on
Financial reward and motivation of employees
(a case study of marketing executives in
pharmaceutical industry)
Submitted in the partial fulfillment of requirement for the award to degree
of Master of Business Administration by G.B. TECHNICAL
UNIVERSITY, LUCKNOW(UP)
Session 2010-12
1
DECLARATION
I, hereby declare that this dissertation titled” Financial reward and motivation of
employees ( A case study of marketing ececutives in pharmaceutical industry)” is
submitted to Shri Siddhi Vinayak Institute Of Management in partial fulfillment of the
requirement for the award of the degree of Master of Business Administration is my
original work done under the valuable guidance of Mr. Abhijit Das Deputy Director,
SSVIM.
This report has not been submitted earlier to any other University or Institution for the
award of any degree, diploma/certificate or published any time before.
KRATIKA PURWAR
ROLL No: 1070370030
2
ACKNOWLEDGEMENT
The successful completion of the report has been accomplished with the valuable
guidance and support of numerous people. I owe to their constructive support, which
sustained my motivation. I take this opportunity to express my profound sense of
gratitude to all of them.
I express my sincere thanks and heartfelt gratitude to Mr. Abhijit das Deputy
Director , Shri Siddhi Vinayak Institute of Management, Bareilly for her excellent and
inspiring guidance and suggestions throughout this project work. Without her inspiring
encouragement, it would have not been possible for me to bring out this project.
I express my splendid thanks to all my lecturers, librarian for extending library
facilities needed to complete this project.
Last but not least, my sincere thanks to everybody who has helped me directly or
indirectly for making this project report a grand success.
KRATIKA PURWAR
3
EXECUTIVE SUMMARY
This document aims at providing employees and management members with the information that
can be beneficial both personally and professionally. Every business enterprise has multiple
objectives including of adequate profit for payment of a reasonable rate of return to the owners and
for investment in business through satisfaction of customers, maintenance of a contended workforce
and creation of a public image. The basic job of management of any business is the effective
utilization of available human resources, technological, financial and physical resources for the
achievement of the business objectives.
This project entitled as “Employee motivation” was done to find out the factors which will motivate
the employees. The study undertakes various efforts to analyze all of them in great details. The
researcher in this project at the outset gives the clear idea of the entire department existing in the
company. From the study, the researcher was able to find some of the important factors which
motivate the employees. Factors like financial incentives and non financial inventive, performance
appraisal system, good relationship with co-workers, promotional opportunities in the present job,
employee participation in decision making are very much effect the level employee motivation. It is
also clear from the study that the company is so eager in motivating their employees and their
present effort for it so far effective.
The human resources can play an important role in the realization of the objectives. Employees work
in the organization for the satisfaction of their needs. If the human resources are not properly
motivated, the management will not be able to accomplish the desired results. Therefore, human
resources should be managed with utmost care to inspire, encourage and impel them to contribute
their maximum for the achievement of the business objectives.
4
TABLE OF CONTENT
5 FINDING 63-65
CONCLUSION
RECOMMENDATIONS
6 BIBLIOGRAPHY 67
7 ANNEXURE 69-71
5
LIST OF TABLE
TABLE NO. PARTICULARS PAGE
NO.
6
LIST OF GRAPH
GRAPH NO. PARTICULARS PAGE
NO.
7
8
Chapter 1
INTRODUCTION
TO
MOTIVATION
9
INTRODUCTION TO MOTIVATION
Rensis Likerthas called motivation as the core of management. Motivation is the core
of management. Motivation is an effective instrument in the hands of the management
in inspiring the work force .It is the major task of every manager to motivate his
subordinate or to create the will to work among the subordinates .It should also be
remembered that the worker may be immensely capable of doing some work, nothing
can be achieved if he is not willing to work .creation of a will to work is motivation in
simple but true sense of term.
Motivation is an important function which very manager performs for actuating the
people to work for accomplishment of objectives of the organization .Issuance of well
conceived instructions and orders does not mean that they will be followed .A
manager has to make appropriate use of motivation to enthuse the employees to
follow them. Effective motivation succeeds not only in having an order accepted but
also in gaining a determination to see that it is executed efficiently and effectively.
In order to motivate workers to work for the organizational goals, the managers must
determine the motives or needs of the workers and provide an environment in which
appropriate incentives are available for their satisfaction .If the management is
successful in doing so; it will also be successful in increasing the willingness of the
workers to work. This will increase efficiency and effectiveness of the organization
.There will be better utilization of resources and workers abilities and capacities.
10
The concept of motivation
The word motivation has been derived from motive which means any idea, need or
emotion that prompts a man in to action. Whatever may be the behavior of man, there
is some stimulus behind it .Stimulus is dependent upon the motive of the person
concerned. Motive can be known by studying his needs and desires.
There is no universal theory that can explain the factors influencing motives which
control mans behavior at any particular point of time. In general, the different motives
operate at different times among different people and influence their behaviors. The
process of motivation studies the motives of individuals which cause different type of
behavior.
Definition of Motivation.
Significance of Motivation
Motivation involves getting the members of the group to pull weight effectively, to
give their loyalty to the group, to carry out properly the purpose of the organization.
The following results may be expected if the employees are properly motivated.
1. The workforce will be better satisfied if the management provides them with
opportunities to fulfill their physiological and psychological needs. The workers
will cooperate voluntarily with the management and will contribute their maximum
towards the goals of the enterprise.
11
2. Workers will tend to be as efficient as possible by improving upon their skills and
knowledge so that they are able to contribute to the progress of the organization.
This will also result in increased productivity.
3. The rates of labor’s turnover and absenteeism among the workers will be low.
4. There will be good human relations in the organization as friction among the
workers themselves and between the workers and the management will decrease.
5. The number of complaints and grievances will come down. Accident will also be
low.
6. There will be increase in the quantity and quality of products. Wastage and scrap
will be less. Better quality of products will also increase the public image of the
business.
Motivation Process.
1. Identification of need
2. Tension
3. Course of action
4. Result –Positive/Negative
5. Feed back
Theories of Motivation.
Understanding what motivated employees and how they were motivated was the focus
of many researchers following the publication of the Hawthorne study results
(Terpstra, 1979). Six major approaches that have led to our understanding of
motivation are Mcclelland’s Achievement Need Theory, Behavior Modification
theory; Abraham H Mallows need hierarchy or Deficient theory of motivation. J.S.
Adam’s Equity Theory, Vrooms Expectation Theory, Two factor Theory.
This need is the strongest and lasting motivating factor. Particularly in case of persons
who satisfy the other needs. They are constantly pre occupied with a desire for
improvement and lack for situation in which successful outcomes are directly
correlated with their efforts. They set more difficult but achievable goals for
themselves because success with easily achievable goals hardly provides a sense of
achievement.
It is the desire to control the behavior of the other people and to manipulate the
surroundings. Power motivations positive applications results in domestic leadership
style, while it negative application tends autocratic style.
It is the related to social needs and creates friendship. This results in formation of
informal groups or social circle.
13
situation, this relevance of this theory may be found in the installation of financial and
non financial incentives.
More immediate is the reward and stimulation or it motivates it. Withdrawal of reward
incase of low standard work may also produce the desired result. However, researches
show that it is generally more effective to reward desired behavior than to punish
undesired behavior.
The intellectual basis for most of motivation thinking has been provided by behavioral
scientists, A.H Maslow and Frederick Heizberg, whose published works are the “Bible
of Motivation”. Although Maslow himself did not apply his theory to industrial
situation, it has wide impact for beyond academic circles. Douglous Mac Gregor has
used Maslow’s theory to interpret specific problems in personnel administration and
industrial relations.
The crux of Maslow’s theory is that human needs are arranged in hierarchy composed
of five categories. The lowest level needs are physiological and the highest levels are
the self actualization needs. Maslow starts with the formation that man is a wanting
animal with a hierarchy of needs of which some are lower ins scale and some are in a
higher scale or system of values. As the lower needs are satisfied, higher needs
emerge. Higher needs cannot be satisfied unless lower needs are fulfilled. A satisfied
need is not a motivator. This resembles the standard economic theory of diminishing
returns. The hierarchy of needs at work in the individual is today a routine tool of
14
personnel trade and when these needs are active, they act as powerful conditioners of
behavior- as Motivators.
Hierarchy of needs; the main needs of men are five. They are physiological needs,
safety needs, social needs, ego needs and self actualization needs, as shown in order of
their importance.
Self-
Actualization
Ego Needs
Social Needs
Safety Needs
Physiological Needs
Fig (2.1)
The above five basic needs are regarded as striving needs which make a person do
things. The first model indicates the ranking of different needs. The second is more
helpful in indicating how the satisfaction of the higher needs is based on the
satisfaction of lower needs. It also shows how the number of person who has
experienced the fulfillment of the higher needs gradually tapers off.
15
needs must be equated with pay rate, pay practices and to an extent with physical
condition of the job.
Safety: - The next in order of needs is safety needs, the need to be free from danger,
either from other people or from environment. The individual want to assured, once
his bodily needs are satisfied, that they are secure and will continue to be satisfied for
foreseeable feature. The safety needs may take the form of job security, security
against disease, misfortune, old age etc as also against industrial injury. Such needs
are generally met by safety laws, measure of social security, protective labor laws and
collective agreements.
Social needs: - Going up the scale of needs the individual feels the desire to work in
a cohesive group and develop a sense of belonging and identification with a group. He
feels the need to love and be loved and the need to belong and be identified with a
group. In a large organization it is not easy to build up social relations. However close
relationship can be built up with at least some fellow workers. Every employee wants
too feel that he is wanted or accepted and that he is not an alien facing a hostile group.
Ego or Esteem Needs: - These needs are reflected in our desire for status and
recognition, respect and prestige in the work group or work place such as is conferred
by the recognition of ones merit by promotion, by participation in management and by
fulfillment of workers urge for self expression. Some of the needs relate to ones
esteem
e.g.; need for achievement, self confidence, knowledge, competence etc. On the job,
this means praise for a job but more important it means a feeling by employee that at
16
all times he has the respect of his supervisor as a person and as a contributor to the
organizational goals.
Self realization or Actualization needs: - This upper level need is one which
when satisfied provide insights to support future research regarding strategic guidance
for organization that are both providing and using reward/recognition programs makes
the employee give up the dependence on others or on the environment. He becomes
growth oriented, self oriented, directed, detached and creative. This need reflects a
state defined in terms of the extent to which an individual attains his personnel goal.
This is the need which totally lies within oneself and there is no demand from any
external situation or person.
17
Douglas McGregor introduced the theory with the help of two views; X assumptions
are conservative in style Assumptions are modern in style.
X Theory
Individuals inherently dislike work.
People must be coerced or controlled to do work to achieve the objectives.
People prefer to be directed
Y Theory
People view work as being as natural as play and rest
People will exercise self direction and control towards achieving objectives
they are committed to
People learn to accept and seek responsibility.
Types of Motivation.
Incentives
An incentive is something which stimulates a person towards some goal. It activates
human needs and creates the desire to work. Thus, an incentive is a means of
18
motivation. In organizations, increase in incentive leads to better performance and
vice versa.
INCENTIVES
19
Motivation is the key to performance improvement
There is an old saying you can take a horse to the water but you cannot force it to
drink; it will drink only if it's thirsty - so with people. They will do what they want to
do or otherwise motivated to do. Whether it is to excel on the workshop floor or in the
'ivory tower' they must be motivated or driven to it, either by themselves or through
external stimulus.
Are they born with the self-motivation or drive? Yes and no. If no, they can be
motivated, for motivation is a skill which can and must be learnt. This is essential for
any business to survive and succeed.
Ability in turn depends on education, experience and training and its improvement is a
slow and long process. On the other hand motivation can be improved quickly. There
are many options and an uninitiated manager may not even know where to start. As a
guideline, there are broadly seven strategies for motivation.
20
Restructuring jobs
Base rewards on job performance
Essentially, there is a gap between an individual’s actual state and some desired state
and the manager tries to reduce this gap. Motivation is, in effect, a means to reduce
and manipulate this gap.
21
Chapter 2
Research
Design
22
OBJECTIVES OF THE STUDY
Primary objective
1. To study the important factors which are needed to motivate the employees.
Secondary Objective.
1. To study the effect of monetary and non-monetary benefits provided by the organization on
the employee’s performance.
2. To study the effect of job promotions on employees.
3. To provide the practical suggestion for the improvement of organization’s
RESEARCH METHODOLOGY.
Research is a systematic method of finding solutions to problems. It is essentially an investigation, a
recording and an analysis of evidence for the purpose of gaining knowledge. According to Clifford
woody, “research comprises of defining and redefining problem, formulating hypothesis or
suggested solutions, collecting, organizing and evaluating data, reaching conclusions, testing
conclusions to determine whether they fit the formulated hypothesis”1
Sampling Design.
A sample design is a finite plan for obtaining a sample from a given population. Simple random
sampling is used for this study.
Universe.
The universe chooses for the research Ganga sheel hospital bareilly .
Sample Size.
23
Number of the sampling units selected from the population is called the size of the sample. Sample
of 50 respondents were obtained from the population.
Sampling Procedure.
The procedure adopted in the present study is probability sampling, which is also known as chance
sampling. Under this sampling design, every item of the frame has an equal chance of inclusion in
the sample.
Primary Sources.
Primary data are in the form of “raw material” to which statistical methods are applied for the
purpose of analysis and interpretations.
The primary sources are discussion with employees, data’s collected through questionnaire.
Secondary Sources.
Secondary data’s are in the form of finished products as they have already been treated statistically
in some form or other.
The secondary data mainly consists of data and information collected from records, company
websites and also discussion with the management of the organization. Secondary data was also
collected from journals, magazines and books.
Nature of Research.
Descriptive research, also known as statistical research, describes data and characteristics about the
population or phenomenon being studied. Descriptive research answers the questions who, what,
where, when and how.
Although the data description is factual, accurate and systematic, the research cannot describe what
caused a situation. Thus, descriptive research cannot be used to create a causal relationship, where
one variable affects another. In other words, descriptive research can be said to have a low
requirement for internal validity.
24
Questionnaire.
A well defined questionnaire that is used effectively can gather information on both overall
performance of the test system as well as information on specific components of the system. A
defeated questionnaire was carefully prepared and specially numbered. The questions were arranged
in proper order, in accordance with the relevance.
Pre-testing
A pre-testing of questionnaire was conducted with 10 questionnaires, which were distributed and all
of them were collected back as completed questionnaire. On the basis of doubts raised by the
respondents the questionnaire was redialed to its present form.
Sample
A finite subset of population, selected from it with the objective of investigating its properties called
a sample. A sample is a representative part of the population. A sample of 50 respondents in total has
been randomly selected. The response to various elements under each questions were totaled for the
purpose of various statistical testing.
Presentation of Data.
The data are presented through charts and tables.
25
26
Chapter 3
INDUSTRY
PROFILE
27
HISTORY OF PHARMACEUTICALS IN INDIA
The first Indian pharmaceutical company, Bengal Chemicals and Pharmaceutical Works, which still exists
today as one of 5 government-owned drug manufacturers, appeared in Calcutta in 1930. For the next 60 years,
most of the drugs in India were imported by multinationals either in fully-formulated or bulk form.
The government started to encourage the growth of drug manufacturing by Indian companies in the early
1960s, and with the Patents Act in 1970, enabled the industry to become what it is today. This patent act
removed composition patents from food and drugs, and though it kept process patents, these were shortened
to a period of five to seven years. The lack of patent protection made the Indian market undesirable to the
multinational companies that had dominated the market, and while they streamed out, Indian companies
started to take their places. They carved a niche in both the Indian and world markets with their expertise in
reverse-engineering new processes for manufacturing drugs at low costs. Although some of the larger
companies have taken baby steps towards drug innovation, the industry as a whole has been following this
business model until the present.
The Indian Pharmaceutical Industry today is in the front rank of India’s science-based industries with wide
ranging capabilities in the complex field of drug manufacture and technology. A highly organized sector, the
Indian Pharma Industry is estimated to be worth $ 4.5 billion, growing at about 8 to 9 percent annually. It
ranks very high in the third world, in terms of technology, quality and range of medicines manufactured.
From simple headache pills to sophisticated antibiotics and complex cardiac compounds, almost every type of
medicine is now made indigenously.
Playing a key role in promoting and sustaining development in the vital field of medicines, Indian Pharma
Industry boasts of quality producers and many units approved by regulatory authorities in USA and UK.
International companies associated with this sector have stimulated, assisted and spearheaded this dynamic
development in the past 53 years and helped to put India on the pharmaceutical map of the world.
The Indian Pharmaceutical sector is highly fragmented with more than 20,000 registered units. It has
expanded drastically in the last two decades. The leading 250 pharmaceutical companies control 70% of the
market with market leader holding nearly 7% of the market share. It is an extremely fragmented market with
severe price competition and government price control.
The pharmaceutical industry in India meets around 70% of the country's demand for bulk drugs, drug
intermediates, pharmaceutical formulations, chemicals, tablets, capsules, orals and injectibles. There are about
250 large units and about 8000 Small Scale Units, which form the core of the pharmaceutical industry in India
(including 5 Central Public Sector Units). These units produce the complete range of pharmaceutical
formulations, i.e., medicines ready for consumption by patients and about 350 bulk drugs, i.e., chemicals
having therapeutic value and used for production of pharmaceutical formulations.
Following the de-licensing of the pharmaceutical industry, industrial licensing for most of the drugs and
pharmaceutical products has been done away with. Manufacturers are free to produce any drug duly approved
by the Drug Control Authority. Technologically strong and totally self-reliant, the pharmaceutical industry in
India has low costs of production, low R&D costs, innovative scientific manpower, strength of national
laboratories and an increasing balance of trade. The Pharmaceutical Industry, with its rich scientific talents
and research capabilities, supported by Intellectual Property Protection regime is well set to take on the
international market.
Over the last two years the pharmaceutical market value has increased to about US $ 355 million because of
28
the launch of new products. According to an estimate, 3900 new generic products have been launched in the
past two years. These have been by and large launched by big brands in the pharma sector. And in the year
2005 Indian pharmaceutical companies captured around 70% of the domestic market.
As in the present scenario, only a few people can afford costly drugs, which have increased price sensitivity in
the pharmaceutical market. Now the companies are trying to capture the market by introducing high quality
and low price medicines and drugs.
With the Product Patent Act, which came into action in January 2005, this industry is able to attract big
MNCs to India. Earlier these big firms had apprehensions in launching new drugs in the Indian market.
At present, a large number of Indian pharmaceuticals companies are looking for tie-ups with foreign firms for
in-license drugs. GlaxoSmithKline is among the top choices for the firms that wish to launch their product in
India, but do not have any branch over here.
Contract research and pharmaceutical outsourcing are the new avenues in the pharmaceutical market.
Contract manufacturing is growing at a very fast pace and is estimated to grow to US $30billion, whereas
contract research is estimated to reach US$6-10 billion.
Indian multinational companies like Dr.Reddy's Lab, Cipla, Ranbaxy, etc have created awareness about the
Indian market prospects in the international pharmaceutical market. Approvals given by Foods and Drugs
Administration (FDA) and ANDA (Abbreviated New Drug Application)/DMF (Drug Master File) have
played an important role in making India a cost-effective and high quality product manufacturer. Furthermore,
the changes that took place in the patent law, change of process patent to product patent, have helped in
reducing the risk of loss for intellectual property.
The Indian pharmaceutical industry traditionally relied on “reverse engineering” i.e.product copying,
through which vast profits were made. In recent years, however, the larger domestic companies have realised
the need to undertake original research and /or penetrate into the regulated generics markets in the USA/EU in
order to survive inthe global market. At the same time, the Indian pharmaceutical industry is renowned for
supplying affordable generic versions of patented drugs for illnesses like HIV/AIDS to some of the world’s
poorest countries.
Some of the strategies that have been followed by Indian pharmaceutical companies
for their growth in the global markets have been as follows:
Geographic diversification with few companies focussing on increasing presence in the regulated
markets and others exploring the developing/under-developed markets of the world 17.
As a part of diversification strategy, some of the companies have acquired brands, facilities and
businesses overseas. Some companies have even started their local marketing in foreign markets.
Partnerships for supply of bulk drugs and formulations with the generic companies as well as
innovators.
For regulated markets such as the US, there are companies focussing on value added generics, niche
segments or patent challenges in the US.
Focus on offering research and manufacturing services on a contractual basis(CMOs and CROs).
29
Apart from these strategies Indian companies have to devise newer strategies continuously to survive in the
highly competitive global market in an industry that is characterised by - high capital requirement, high
technical requirement, high process skills, high value addition prospects, high export volumes, high market
sophistication. Indian companies are following the route of mergers and acquisitions to make inroads in the
foreign markets. They need to consolidate further in different parts of the world to become trans-national
players. Indian companies will have to rise above the statement of Michael Porter (1990), that most multi-
national firms are just national firms with international operations. They shall certainly be at an advantage, as
their strong national identities will give them a competitive advantage in the global
markets.
INDUSTRY STRUCTURE
The Pharmaceutical industry in India is fragmented with over 3,000 small/medium sized generic
pharmaceutical manufacturers. It has over 20,000 units out of which 300 units are in the organized sector;
while others exist in the small scale/unorganized sector. The leading 250 pharmaceutical companies control
70% of the market with market leader holding nearly 7% of the market share. There are also 5 Central Public
Sector Units that manufacture drugs. These companies are:
Indian Drugs & Pharmaceuticals
Hindustan Antibiotics Ltd.
Bengal Chemical and Pharmaceuticals Ltd
Bengal Immunity Ltd.
Smith Stanistreet Pharmaceuticals Ltd.
The Indian pharmaceutical industry consists of manufacturers of bulk drugs and formulations. Bulk drugs
include the active pharmaceutical ingredients (APIs) which are used for the manufacture of formulations.
According to estimates, the proportion of formulations and bulk drugs is in the order of 75:25. There are over
60,000 formulations manufactured in India in more than 60 therapeutic segments. More than 85% of the
formulations produced in the country are sold in the domestic market.
India is largely self-sufficient in case of formulations, though some life saving, newgeneration-
technology-barrier formulations continue to be imported.The Indian pharmaceutical industry has the highest
number of plants approved by theUS Food and Drug Administration outside the US. It also has the large
number of Drug Master Files (DMFs) filed which gives it access to the high growth generic bulk drugs
market. The industry now produces bulk drugs belonging to all major
therapeutic groups requiring complicated manufacturing processes and has also developed “good
manufacturing practices” (GMP) compliant facilities for the production of different dosage forms. Setting up
a plant is 40% cheaper in India compared to developed countries and the cost of bulk drug production is 60-
70 percent less. The strength of the industry is in developing cost effective technologies in the shortest
possible time for drug intermediates and bulk activities without compromising on quality. In accordance with
WTO stipulations, India grants product
patent recognition to all New Chemical Entities.
30
INDUSTRY SEGMENTATION
Indian pharmaceutical industry can be widely classified into bulk drugs, formulations and contract research.
Bulk drugs are the Indian name for Active Pharmaceuticals Ingredients (API). Formulations cover both
branded products and generics. Indian pharmaceutical sector is self sufficient in meeting domestic demand
and exports successfully to various markets globally. The existence of process patents in India till January
2005 fuelled the growth of domestic pharmaceutical companies and developed them in areas like organic
synthesis and process engineering, as a result of which, Indian pharmaceuticals sector is able to meet almost
95 percent of the country’s pharmaceutical needs. India is globally recognized as a low cost, high quality bulk
drugs and formulations manufacturer and supplier. Contract Research, a nascent industry in India has
witnessed commendable growth in the last few years. As per Yes Bank /OPPI report (2007-08), formulation
segment (including domestic formulation and formulation exports) constituted 72%of the total pharmaceutical
industry (in terms of sales) while bulk drugs and contract research constituted 25% and 3% of pharmaceutical
industry respectively.
Formulations constitute nearly 81% and bulk drugs account for the remaining 19%. Indian pharmaceutical
industry has about 2400 licensed manufacturers and more than 100,000 drugs.
On the basis of formulations, the pharmaceutical industry can further be classified into:
Prescription medicines: Also known as ethical formulations. They can be dispensed only on the prescription
from a qualified medical practitioner.
Over-the-counter medicines: Also known as OTC formulations. They can be dispensed even in the absence
of prescription, e.g. analgesics, cough drug, etc.
31
On the basis of formulations patent, pharmaceutical industry can be classified as
Branded formulations: They are ethical formulations prepared using a bulk drug under product patent and
are marketed by a single pharmaceutical company.
Generics: They are formulations that do not contain any patented bulk drug and can be manufactured by
more than one company.
Growing Population and Improving Incomes: Household incomes are rising in India; the proportion of
middleclass in Indian population is also increasing. Statistics show a clear migration of population towards
middle and upper classes. Rise in income levels is always accompanied by greater demand for medical
facilities and pharmaceutical products. Middle class is already 70 million strong and is expected to grow
even fast, accounting for a higher share of total population. Increase in living standards will lead to longer
life expectance and higher consumption of drugs and health care services.
Changing lifestyles: Rising incomes and improving literacy rates are leading to change in lifestyles.
While incomes provide the means to access medical facilities and products, improving literacy boost
awareness about diseases and lead to higher consumption of drugs. Changing lifestyles, however, is leading
to a change in disease profile especially in urban areas. Hectic lifestyles and high cholesterol diets are
resulting growing incidence of diseases such as
cardio vascular diseases and cancer.
Research and Development: The R&D efforts of Indian companies have been largely focussed on
chemical synthesis of molecules and their cost effective production thereof. India has a large pool of
technical and scientific personnel with good English language skills. Indian scientists have developed a high
degree of chemical synthesis skills while engineers have developed competencies in producing molecules
cost effectively. These skills have helped Indian companies tap generic markets abroad successfully in the
past and will continue to do so.
32
Healthcare Expenditure: Indian healthcare system is largely run by the govt with private sector playing
a small, but important part. The healthcare system in India comprises government hospitals in cities and
towns and a network of health centres in rural areas. This is supplemented by a string of private hospitals
and clinics in largely urban areas. The public expenditure on health has been growing at a decent rate while
private expenditure has been recording marginal growth.
Insurance Sector giving a Lift: Indian insurance sector has been thrown open to private sector. Large
sections of Indian population are not covered by health insurance schemes. Currently, less than 10% of the
Indian population is covered by some form of health insurance.
According to the Economic Survey (2006-07), the pharmaceuticals industry had achieved a
turnover of about US$ 12 billion in 2005-06, and is expected to grow by 13% in 2007. Its
pharma export value reached about US$ 4.7 billion during 2005-06.
Pharmaceutical industry accounts for about 2.91% of total FDI into the country. The FDI in
pharmaceutical sector is estimated to have touched US$ 172 million, thereby showing a
compounded annual growth rate of about 62.6%. Drugs and pharmaceuticals sector is at 8th
rank in India's top 10 FDI attracting sectors. According to the Economic Survey for the year
2006-07, the value of pharma output has increased ten times over the last 15 years.
From Rs. 50 billion in 1990 it has grown to Rs.550 billion (US$ 12 billion) in 2005-06. Driven by
growing number of pharmaceutical units, increased knowledge skills, improved quality and
increasing national as well as international demand, India is now recognized as a leading global
pharma player.
Innovation, through more value to the user, through efficiencies in distribution, logistics
and product promotion
The Indian pharmaceutical industry ranks
4th in terms of volume (with an 8 per cent share in global sales)
13th in terms of value (with a share of 1 per cent in global sales)
Produces 20-24 per cent of the world's generic drugs (in terms of value
17th in terms of pharmaceutical export value
Drugs worth $ 190 billion in annual revenues would be vulnerable to generics
The global generics market is expected to grow at about 15 percent to reach $ 70 billion in
the year 2008.
The rise in generics gives way to specialty products such as hormones, steroids, peptides
and biosimilars.
Global pharma industry would see revenue growth of only 5% to reach $ 735 billion in
33
the year 2008.
34
PHARMACEUTICAL INDUSTRY
RANBAXY LABORATORIES:
Ranbaxy Laboratories Limited is India's largestpharmaceutical company.
Incorporated in 1961, Ranbaxy exports its products to 125 countries with ground operations in 46 and
manufacturing facilities in seven countries. The company went public in 1973, and Japanese company
Daiichi Sankyo gained majority control in 2008.
Atul Sobti is currently Ranbaxy CEO and Managing Director,[2] having taken over from Malvinder
Singh in May 2009.
Formation
Ranbaxy was started by Ranbir Singh and Gurbax Singh in 1937 as a distributor for a Japanese
company Shionogi. The name Ranbaxy is a portmanteau word from the names of its first owners Ranbir
and Gurbax. Bhai Mohan Singh bought the company in 1952 from his cousins Ranbir Singh and Gurbax
Singh. After Bhai Mohan Singh's son Parvinder Singh joined the company in 1967, the company saw a
significant transformation in its business and scale. His sons Malvinder Mohan Singh and Shivinder
Mohan Singh sold the company to the Japanese company Daiichi Sankyo in June 2008.
Trading
In 1998, Ranbaxy entered the United States, the world's largest pharmaceuticals market and now the
biggest market for Ranbaxy, accounting for 28% of Ranbaxy's sales in 2005.[citation needed]
For the twelve months ending on 31 December 2005, the company's global sales were at US $1,178
million with overseas markets accounting for 75% of global sales (USA: 28%, Europe:
17%, Brazil,Russia, and China: 29%). For the twelve months ending on December 31, 2006, the
company's global sales were at US $1,300 million.
Most of Ranbaxy's products are manufactured by license from foreign pharmaceutical developers, though
a significant percentage of their products are off-patent drugs that are manufactured and distributed
without licensing from the original manufacturer because the patents on such drugs have expired
35
Acquisition
On June 11 2008, Daiichi-Sankyo acquired a 34.8% stake in Ranbaxy, for a value $2.4 billion. In
November 2008, Daiichi-Sankyo completed the takeover of the company from the founding Singh family
in a deal worth $4.6 billion by acquiring a 63.92% stake in Ranbaxy.
The addition of Ranbaxy Laboratories extends Daiichi-Sankyo's operations - already comprising
businesses in 21 countries.[citation needed] For Ranbaxy, the deal frees up its debt and imparts more flexibility
into its growth plans.[citation needed] The combined company is worth about $30 billion.
CIPLA LIMITED:
36
Cipla, is a prominent Indian pharmaceutical company, best-known outside its home
country for manufacturing low-cost anti-AIDS drugs for HIV-positive patients in developing
countries. Founded by Khwaja Abdul Hamied as The Chemical, Industrial & Pharmaceutical
Laboratories, Cipla makes drugs to treat cardiovascular disease, arthritis, diabetes, weight control,
depression and many other health conditions, and its products are distributed in more than 180
countries worldwide. [1] Among the hundreds of generic medications it produces for international
distribution are atorvastatin, amlodipine, fluoxetine, venlafaxine hydrochloride and metformin.
Recently, Cipla sold the manufacturing rights of its high-end emergency contraceptive pill, I-pill,
to its pharma field counterpartNicholas Piramal (Piramal Healthcare) for Rs. 95 crores. Cipla
earned a revenue of total Rs. 33 crores (approx.) from the sales of their popular contraceptive pill,
to date.
Technology services
Cipla offers services like consulting, commissioning, engineering, project appraisal, quality
control, know-how transfer, support, and plant supply.
Apart from its presence in the Indian market, Cipla also has an export market and regularly
exports to more than 150 countries in regions such as North America, South American, Asia,
Europe, Middle East, Australia, and Africa. For the year ended 31 March, 2007 Cipla’s exports
were worth approximately Rs. 17,500 million. Cipla is also considerably well-known for its
technological innovation and processes for which the company received know-how loyalties to
the tune of Rs. 750 million during 2006-07[citation needed]. Cipla has been approved by regulatory
bodies such as:
World Health Organization
Food and Drug Administration (FDA), USA
Therapeutic Goods Administration (TGA), Australia
Pharmaceutical Inspection Convention (PIC), Germany
National Institute of Pharmacy (NIP), Hungary
The Medicines and Healthcare products Regulatory Agency (MHRA) is the UK government
agency. Cipla has recently launched i-Pill which is a single dose emergency contraceptive and has
acquired a great deal of popularity in a short span of time. Other latest launches of Cipla include
products such as Nova, Moxicip, Flomex, Fullform, Montair LC, and Imicrit.
37
Cipla) are evolving to become R & D companies and competing in the global marketplace.
Cipla is one of the first companies to register AIDS drugs under the US program PEPFAR.[3]
2007 AHF campaign
In August 2007 Cipla was confronted by a US-based group known as AIDS Healthcare
Foundation (AHF) with a well-funded campaign of full-page ads in various Indian newspapers
suggesting Cipla was pricing an AIDS drug called Viraday higher in India than in Africa.[4]
Antiflu and Virenza
In December 2008, Cipla won a court case in India allowing it to manufacture a cheaper generic
version of oseltamivir, marketed by Hoffmann-La Roche (Roche) under the trade name Tamiflu,
under the Cipla tradename Antiflu. In May 2009, Cipla won approval from the World Health
Organization certifying that its drug Antiflu was as effective as Tamiflu, and Antiflu is included
in the World Health Organization list of prequalified medicinal products.
GLAXO SMITHCLINE:
Glaxo SmithKline is the world's leading research based pharmaceuticals company. It was
formed on December 27, 2000 as a result of merger of two leading international organizations
viz., GlaxoWellcome and Smithkline Beecham.
The company is working hard to improve the quality of the human life by enabling people to
do more, feel better and live longer. It believes that there is no achievement without integrity.
The company has its headquarters in UK with operations based in USA, and has 85
manufacturing sites in over 37 countries. The company has combined sales of over 20 billion
pounds, market share of about 7%, and intellectual property of more than 100,000 employees
worldwide.
Out of these 100,000 employees, approximately 35% are in manufacturing units, 16% are in
R&D, and 40% are in sales and marketing. The manufacturing plants of the company in India
are located in Nabha, Rajahmundry and Sonepat, and have employee strength of about 2700.
GSK Consumer healthcare Ltd. and GSK Pharmaceuticals Ltd. are the two businesses of GSK
in India with headquarters at Gurgaon, Haryana. Its products include:
38
SUN PHARMACEUTICALS INDUSTRIES LTD.:
Industry Pharmaceutical
From nine pharmaceutical production operations in India as well as a major R&D operation Zydus Cadila
develops and manufactures a large range of pharmaceuticals as well as diagnostics, herbal products, skin
care products and other OTC products. The company also makes EverYuth Naturals Walnut Scrub &
Ultra Mild Scrub -India 's leading scrub brand , EverYuth Naturals Golden Glow Peel-Off-the no. 1 in the
39
peel-off category and a face wash range .It is also the maker of Sugar Free, India's most popularartificial
sweetener,[1] and Nutralite, India's most popular cholesterol-free margarine.[2]
[Active pharmaceutical ingredient plants
WOCKHARDT LIMITED:
Industry Pharmaceuticals
Health care
Founded 1960s
Area Worldwide
served
40
Murtaza Khorakiwala(Managing
Director)
Huzaifa Khorakiwala(Executive
Director)
Products Formulations
Biopharmaceuticals
Nutrition products
Vaccines
41
Matrix Laboratories Ltd. 1.60
42
facilities and regulatory compliance
Weaknesses
Low Indian share in world pharmaceutical market (about 2%)
Lack of strategic planning
Fragmented capacities
Low R&D investments
Absence of association between institutes and industry
Low healthcare expenditure
Production of duplicate drugs
The NPPA (National Pharma Pricing Authority), sets prices of different drugs,
which leads to lower profitability for the companies
Large no. of small players increases competition and reduces efficiency
Opportunities
Incredible export potential
Increasing health consciousness
New innovative therapeutic products
Globalization
Drug delivery system management
Increased incomes
Production of generic drugs
Contract manufacturing
Clinical trials & research
Drug molecules
The new patent product regime will bring with it new innovative drugs. This will
increase the profitability of MNC pharma companies and will force domestic
pharma companies to focus more on R&D
43
Large number of drugs going off-patent in Europe and in the US between 2005 to
2009 offers a big opportunity for the Indian companies to capture this market
Can become a global outsourcing hub for pharmaceutical products
Threats
Small number of discoveries
Competition from MNCs
Transformation of process patent to product patent (TRIPS)
Outdated Sales and marketing methods
Non-tariff barriers imposed by developed countries
Containment of rising health-care cost.
Stricter registration procedures
High entry cost in newer markets
Threats from other low cost countries like China and Israel exist
Failure of the new patent system: Prerequisites associated with Sec 3(d) of the Patent
(Amendment) Act 2005 restrict the copyright of an existing drug. Moreover, mandatory
licensing permits Indian companies to keep producing generics of copyright products for
overseas selling to underdeveloped nations.
Lack of proper infrastructure: Issues associated with regular power cuts and lack of suitable
transport infrastructure will decelerate the expansion of the sector.
Inadequate funds: Restricted funding from FIs, venture capitalists and the government may
decelerate the expansion of biotechnology sector in India.
Regulatory impediments: Rising of due meticulousness and conformity with product
standards leads to high costs and interruption in the launch of new products.
Severe competition: Low margins and restricted capital to assist R&D is the result of intense
pricing competition among local producers. This rivalry will further deepen from the joining
in of the big drug companies in the Indian market to control the cost benefit and large
reserve sources.
44
India's US$ 3.1 billion pharmaceutical industry is growing at the rate of 14 percent per year. It is one of the
largest and most advanced among the developing countries.
Over 20,000 registered pharmaceutical manufacturers exist in the country. The domestic pharmaceuticals
industry output is expected to exceed Rs260 billion in the financial year 2002, which accounts for merely
1.3% of the global pharmaceutical sector. Of this, bulk drugs will account for Rs 54 bn (21%) and
formulations, the remaining Rs 210 bn (79%). In financial year 2001, imports were Rs 20 bn while exports
were Rs87 bn.
CUSTOM DUTY
Exemption of custom duty for import of all capital goods, inputs, consumables and
reference standards for R&D purposes
Extension of customs duty exemption to more life saving drugs and other anti–Aids and
anti–cancer formulations
EXCISE DUTY
Goods manufactured in R&D centres should be exempted from excise duty and service tax
Extension of excise duty exemption to more life saving drugs and other anti –Aids and anti
–cancer formulations
OTHERS
Strengthen and increase capital outlay for academic institutions engaged in scientific
research
Requirement of a single window clearances instead of multiple clearances from different
institutions for testing a new molecule
Passing of Central Drug Authority Bill –pending for the last five years
Removal of cost based price controls
Continuation of the tax shelter in specified zones like Himachal Pradesh, Sikkim and
Jammu
Cut off date for the tax holiday should be extended till March 31, 2012.{1}
Benefit should be expanded to cover expenditure incidental to research carried outside
R&D facility such as clinical trials, bio-equivalence studies etc carried on in India or in any
foreign country.
45
STEPS TO STREGHTHEN THE INDUSTRY
Indian companies need to attain the right product-mix for sustained future growth. Core
competencies will play an important role in determining the future of many Indian pharmaceutical
companies in the post product-patent regime after 2005. Indian companies, in an effort to
consolidate their position, will have to increasingly look at merger and acquisition options of either
companies or products. This would help them to offset loss of new product options, improve their
R&D efforts and improve distribution to penetrate markets.
Research and development has always taken the back seat amongst Indian pharmaceutical
companies. In order to stay competitive in the future, Indian companies will have to refocus
and invest heavily in R&D.
The Indian pharmaceutical industry also needs to take advantage of the recent advances in
biotechnology and information technology. The future of the industry will be determined by how
well it markets its products to several regions and distributes risks, its forward and backward
integration capabilities, its R&D, its consolidation through mergers and acquisitions, co-marketing
and licensing agreements.
The dream of Indian pharmaceutical companies for marking their presence globally and competing
with the pharmaceutical companies from the developed countries like Europe, Japan, and United
States is now coming true. The new patent regime has led many multinational pharmaceutical
companies to look at India as an attractive destination not only for R&D but also for contract
manufacturing, conduct of clinical trials and generic drug research. With market value of about
US$ 45billion in 2005,the generic sector is expected to grow to US$ 100billion in the next few
years.The Indian companies are using the revenue generated from generic drug sales to promote
drug discovery projects and new delivery technologies. Contract research in India is also growing
at the rate of 20-25% per year and was valued at US$ 10-120million in 2005. India is holding a
major share in world's contract research Clinical Research Outsourcing (CRO), a budding industry
valued over US$ 118 million per year in India, is estimated to grow to US$ 380 million by 2010, as
MNCs are entering the market with ambitious plans. By revising its R&D policies the government
is trying to boost R&D in domestic pharmaceutical industry. It is giving tax exemption for a period
of ten years and relieving customs and excise duties of all the drugs and material imported or
exported for clinical trials to promote innovative R&D.
The future of Indian pharmaceutical sector is very bright because of the following
factors:
Clinical trials in India cost US$ 25 million each, whereas in US they cost
46
between US$ 300-350 million each.
Indian pharmaceutical companies are spending 30-50% less on custom
synthesis services as compared to its global costs.
In India investigational new drug stage costs around US$ 10-15 million, which
is almost 1/10th of its cost in US (US$ 100-150million).
Treatment to prevention, from generalised to personalised medicine, from
distribution chain to direct consumer sales and from multilateral to unilateral
regulatory regime.
With market value of about US$ 45billion in 2005, the generic sector is expected to
grow to US$ 100billion in the next few years.
Clinical Research Outsourcing (CRO), a budding industry valued over US$ 118
million per year in India, is estimated to grow to US$ 380 million by 2010
47
Betapharm of Germany for Euro 480 mn (Rs 2550 cr) and Ranbaxy Terapia buy in Romania for
US$ 324 mn (Rs 1250 cr approx). In 2007, Indian pharma sector witnessed 25 Mergers &
acquisition deals, with 15 cross border transaction worth US$ 600-700 mn.
Mergers and acquisitions have proven tool to seize growth opportunities and is widely
resorted to by players by either moving up the value chain or by integrating downstream
production. More mergers & acquisitions and consolidation activity in near future is expected
which is driven in the medium term by implementation of the new patent regime and generic
companies looking to establish a low-cost base out of the country.
48
• How are you going to use to tackle these costs?
• Have you identified all the hidden costs?
• How do you compare to the best-in-class?
104
• What is your baseline and what can you achieve?
• Where are you going to start?
Cost is complicated, ranging from back office through manufacturing and quality to sales. To gain
real benefits a structured programme of cost identification and improvement has to be in place.
4. Infrastructure
Compared with western industrial nations, energy prices are low but companies must expect
repeated power cuts and offset fluctuations in the electricity network with the help of emergency
power generators. In many areas, the hot and humid climate makes high demands on climate
technology at production plants and on the refrigeration of finished products. Insufficient energy
supply also leads to a situation where production hours must be handled very flexibly. This
shortage can only be eliminated in the medium term and will require maximum effort. However,
India’s government intends to expand power generation capacities to roughly 240 GW by the end
of the 11th five-year plan in 2012. This would mean a more than 100 GW, or nearly 90%, increase
on today's total. Moreover, the country’s lacking transport infrastructure is increasingly turning
into a major obstacle. The pharmaceuticals industry is especially dependent on road transport.
However, the major transport links are chronically congested and many are in a poor state of repair.
Of the total road network covering just over 3.3 million kilometres, only about 6% are relatively
well built National and State Highways. In many cases, there are no paved surfaces or there is only
one lane for all traffic. But the government has launched an extensive investment programme
entitled the National Highway Development Programme, to be implemented by the middle of the
next decade.
Legal changes in India in 2005 made it considerably more difficult to produce “new”generics.
Foreign pharmaceuticals, which enjoy 20 years of patent protection, can no longer be copied by
means of alternative production procedures and sold in the domestic market. Hence, a reorientation
was required in India’s pharmaceutical industry. It now focuses on drugs developed in-house and
contract research or contract 105 production for western drug makers. Thus this transition phase of
reorientation is a challenge for the industry.
49
Chapter 4
ANALYSIS
AND
INTREPRETATION
50
ANALYSIS AND INTERPRETATION OF DATA
1 .Response about the support from the HR department
SL NO NUMBER OF
PARTICULAR
RESPONDENTS PERCENTAGE
1 Highly satisfied 18 36
2 Satisfied 29 58
3 Neutral 3 6
4 Dissatisfied 0 0
5 Highly satisfied 0 0
Total 50 100
(Table 1)
70
58
60
50
40 36
Series1
30
20
10 6
0 0
0
Highly Satisfied Netural Dissatisfied highly
Satisfied Dissatisfied
(Chart 4.1)
INTERPRETATION
The table shows that 58% of the respondents are satisfied with the support they are
getting from the HR department.
51
2 .Management is interested in motivating the employees
SL NO NUMBER OF
PARTICULAR
RESPONDENTS PERCENTAGE
1 Strongly Agree 27 54
2 Agree 20 40
3 Neutral 3 6
4 Disagree 0 0
5 Strongly Disagree 0 0
Total 50 100
(Table 2)
60 54
50
40
40
30 Series1
20
10 3
0 0
0
Strongly Agree Netural Disagree Strongly
Agree Disagree
(Chart 2)
INTERPRETATION
52
The table shows that 54% of the respondents are strongly agreeing that the
management is interested in motivating the employees.
3. The type of incentives motivates you more
SL NO NUMBER OF
PARTICULAR
RESPONDENTS PERCENTAGE
1 Financial Incentives 15 30
2 Non financial Incentives 9 18
3 Both 26 52
Total 50 100
(Table 3)
30%
Financial Incentives
Non Financial Incentives
52%
Both
18%
(Chart 3)
INTERPRETATION
The table shows that 52% of the respondents are expressing that both financial and
non financial incentives will equally motivate them.
53
4. Satisfaction with the present incentives scheme
SL NO NUMBER OF
PARTICULAR
RESPONDENTS PERCENTAGE
1 Highly satisfied 18 36
2 Satisfied 29 58
3 Neutral 3 6
4 Dissatisfied 0 0
5 Highly satisfied 0 0
Total 50 100
(Table 4)
70%
58%
60%
50%
40% 36%
30%
20%
10% 6%
0% 0%
0%
Highly Satisfied Netural Dissatisfied highly
Satisfied Dissatisfied
(Chart 4)
INTERPRETATION
54
The table shows that 58% of the respondents are satisfied with the present incentive
scheme of the organization.
SL NO NUMBER OF
PARTICULAR
RESPONDENTS PERCENTAGE
1 Strongly Agree 12 24
2 Agree 23 46
3 Neutral 3 6
4 Disagree 9 18
5 Strongly Disagree 3 6
Total 50 100
(Table 5)
50% 46%
45%
40%
35%
30%
24%
25% Series1
18%
20%
15%
10% 6% 6%
5%
0%
Strongly Agree Netural Disagree Strongly
Agree Disagree
(Chart 5)
INTERPRETATION
55
The table shows 46% of employees agree that there is a periodical increase in the
salary.
SL NO NUMBER OF
PARTICULAR
RESPONDENTS PERCENTAGE
1 Strongly Agree 15 30
2 Agree 18 36
3 Neutral 11 22
4 Disagree 3 6
5 Strongly Disagree 3 6
Total 50 100
(Table 6)
40% 36%
35%
30%
30%
25% 22%
20%
15%
10% 6% 6%
5%
0%
Strongly Agree Agree Netural Disagree Strongly Disagree
(Chart.6)
56
INTERPRETATION
The table shows 35% of employees agree with good job security exist in the company.
7.Performance appraisal activities are helpful to get motivated.
SL NO NUMBER OF
PARTICULAR
RESPONDENTS PERCENTAGE
1 Strongly Agree 9 18
2 Agree 23 46
3 Neutral 6 12
4 Disagree 3 3
5 Strongly Disagree 9 18
Total 50 100
(Table 7)
50% 46%
45%
40%
35%
30%
25%
20% 18% 18%
15% 12%
10% 6%
5%
0%
Strongly Agree Agree Netural Disagree Strongly Disagree
(Chart 7)
INTERPRETATION
The table shows 46% of the respondents agree that the performance appraisal
activities are helpful to get motivated.
57
8.Factors which motivates you the most.
SL NO NUMBER OF
PARTICULAR
RESPONDENTS PERCENTAGE
1 Salary increase 21 42
2 Promotion 15 30
3 Leave 3 6
4 Motivational talk 5 10
5 Recognition 6 12
Total 50 100
(Table 8)
(Chart 8)
INTERPRETATION
The table shows that the 42% of the respondent is responding that increase in salary
will motivate them the most.
58
9 .Incentives and other benefits will influence your performance
SL NO NUMBER OF
PARTICULAR
RESPONDENTS PERCENTAGE
1 Influence 32 64
2 Does not influence 12 24
3 No opinion 6 12
Total 50 100
(Table 9)
12%
24% Influence
Does not influence
No opinion
64%
(Chart 9)
INTERPRETATION
The table shows 64% of the respondents responded that incentives and other benefits
will influence their performance
59
10.Management involves you in decision making which are connected to your
department.
SL NO NUMBER OF
PARTICULAR
RESPONDENTS PERCENTAGE
1 Yes 47 94
2 No 0 0
3 Occasionally 3 6
Total 50 100
(Table 10)
0% 6%
94%
Yes No Occasionally
(Chart 10)
INTERPRETATION
60
The table shows 94% of the respondents agree that they the Management involve
them in decision making which are connected to your department.
Chapter 5
FINDINGS,
CONCLUSION
AND
Suggestions
61
FINDINGS
.
The employees are satisfied with the present incentive plan of the company
Majority of the employees agreed that there job security to their present job.
From the study it is clear that most of employees agrees to the fact that
performance appraisal activities .
The study reveals that increase in the salary will motivates the employees more.
The incentives and other benefits will influence the performance of the
employees.
62
SUGGESTIONS
The suggestions for the findings from the study are follows
Most of the employees agree that the performance appraisal activities are helpful to get
motivated, so the company should try to improve performance appraisal system, so that they
can improve their performance.
Non financial incentive plans should also be implemented; it can improve the productivity
level of the employees.
Organization should give importance to communication between employees and gain co-
ordination through it.
Better carrier development opportunities should be given to the employees for their
improvement.
If the centralized system of management is changed to a decentralized one, then there would
be active and committed participation of staff for the success of the organization
63
CONCLUSION
The study on employee motivation highlighted so many factors which will help to motivate the
employees. The study was conducted among 50 employees and collected information through
structured questionnaire. The study helped to findings which were related with employee
motivational programs which are provided in the organization.
The performance appraisal activities really play a major role in motivating the employees of the
organization. It is a major factor that makes an employee feels good in his work and results in his
satisfaction too. The organization can still concentrate on specific areas which are evolved from this
study in order to make the motivational programs more effective. Only if the employees are properly
motivated- they work well and only if they work well the organization is going to benefit out it.
Steps should be taken to improve the motivational programs procedure in the future. The suggestions
of this report may help in this direction.
64
BIBLIOGRAPHY
65
BOOKS
Websites
www.oppi.com
www.capitaline.com
www.google.com
www.wikipedia.com
-. www.altavista.com
-www.pharmainfo.com
66
ANNEXURE
67
QUESTIONNAIR
68
Neutral
Dissatisfied
Highly Satisfied
69
Motivational Talk
Recognition
10. Do Management involve you in decision making which are connected to your
department.
Yes
NO
Occasinally
70
71